XOM closes above its opening price after recovering from early selling pressure
Exxon Mobil Corporation (XOM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
XOM finished the week 6.19% higher at 44.60 after edging higher $0.04 (0.09%) today on low volume, slightly outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.60 lower after the open, Exxon Mobil managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, XOM actually lost -0.71% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XOM as at May 22, 2020):
Friday's trading range has been $1.22 (2.77%), that's below the last trading month's daily average range of $1.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XOM.
Prices are trading close to the key technical resistance level at 45.79 (R1).
Exxon shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 45.79 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 47.68.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Exxon Mobil. Out of 561 times, XOM closed lower 55.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.38% with an average market move of -0.35%.